Selangor Journal

Riyadh Group Indonesia invests RM 400 Mil

Photo taken from Marketing Interactive

Indonesian property developer Riyadh Group Indonesia (RGI) reveals it will invest over $400 million to expand its business in Malaysia.

RGI has expanded into Malaysia with the acquisition of controlling stakes in two local property companies.

Property players Mainstay Holdings Sdn Bhd and Pembinaan Tetap Teguh Sdn Bhd (PTT) signed a memorandum of agreement with the Indonesian property developer, which has committed to investing US$450 million (RM1.9 billion) as part of its venture into the Malaysian property market.

According to the company owner Bally Saputera Datuk Jano Sati, the company has outlined plans to acquire controlling stakes in Malaysia-based companies such as Mainstay Properties and Horizon KLPO.

This includes a 65% stake in Mainstay Properties, known for its ownership of the Space U8 Mall in Selangor. Similarly, Riyadh Group Indonesia plans to buy a 65% in Horizon KLPO, which also owns land in Sepang, Selangor.

If the acquisition is successful, a $15 million rebrand of Space U8 Mall will be undertaken, along with a shift in concept and marketing strategy. The new strategy aims to be a combination of the characters and identities of Malaysia and Indonesia.

Other changes include the transformation of the mall into one featuring Indonesian products, along with promoting Indonesia’s tourism ministry’s “Wonder Indonesia” campaign in Malaysia.

Current initiatives for the mall include the invitation of retailers, supermarkets, entertainment and travel companies as well as F&B outlets.

According to Bally, while Malaysia may look like a challenging country to many Indonesian investors, there are plenty of business opportunities for them given the country’s progressiveness and business-friendly environment.

“We should play the market when it is sluggish. We should not wait until the market is good,” he said on reasons behind RGI’s decision to enter the Malaysian property market when the country’s property market is soft and challenging.

The cooperation agreement was formalised between RGI president director Bally Saputera Datuk Jano Sati and Mainstay/PTT MD Teo Swee Phin.

Also present was Federal Territories Minister Khalid Abdul Samad.

Top Picks

Region Smart City Awards open for applications until June 14

Vietnam economy expands as exports boom

Significant rise in provocative content on social media: MCMC

Editor Selangor Journal